Strategic Global Income Fund, Inc. — Reports Earnings

NEW YORK--(BUSINESS WIRE)--Strategic Global Income Fund, Inc. (the “Fund”) (NYSE: SGL), a non-diversified, closed-end management investment company seeking high current income and secondarily, capital appreciation through investments in US and foreign debt securities, today announced its performance for the fiscal second quarter ended and fiscal year-to-date ended May 31, 2009.

For the fiscal second quarter ended May 31, 2009, the Fund's earnings from net investment income (excluding short-term capital gains) were $1,933,468, equal to $0.11 per share. During this period, the Fund paid monthly distributions (which may be comprised of net investment income, net realized capital gains, and/or return of capital) of $3,454,570, equal to $0.19 per share. Total net realized and unrealized gains from investment activities were $16,399,323, equal to $0.90 per share, for the same period. This compares to earnings from net investment income (excluding short-term capital gains) of $2,852,078, equal to $0.16 per share; monthly distributions paid (which were comprised of net investment income, net realized capital gains, and/or return of capital) of $4,256,133, equal to $0.23 per share; and total net realized and unrealized losses from investment activities of $(2,631,397), equal to $(0.14) per share for the fiscal second quarter ended May 31, 2008.

For the six months ended May 31, 2009, the Fund’s earnings from net investment income (excluding short-term capital gains) were $4,873,827, equal to $0.27 per share. During this period, the Fund paid monthly distributions (which may be comprised of net investment income, net realized capital gains, and/or return of capital) of $6,865,319, equal to $0.38 per share. Total net realized and unrealized gains from investment activities were $15,357,286, equal to $0.84 per share, for the same period. This compares to earnings from net investment income (excluding short-term capital gains) of $5,167,542, equal to $0.28 per share; monthly distributions paid (which were comprised of net investment income, net realized capital gains, and/or return of capital) of $8,442,882, equal to $0.46 per share; and total net realized and unrealized gains from investment activities of $4,424,782, equal to $0.24 per share, for the six months ended May 31, 2008. Additionally, in December 2007, the Fund paid year-end distributions of long-term capital gains of $1,433,318, equal to $0.08 per share.

On May 31, 2009, total net assets of the Fund were $183,834,035. The net asset value per share was $10.07, based on 18,258,828 shares outstanding, which represents a decrease of 11.51% from the net asset value per share of $11.38, ($207,781,636 attributable to 18,258,828 shares outstanding) on May 31, 2008.

The Fund adopted a managed distribution policy (“Policy”) in May 1998. Pursuant to the Policy as in effect from May 2005 through July 2009, the Fund made regular monthly distributions at an annualized rate equal to 8% of the Fund’s net asset value, as determined as of the last day on which the New York Stock Exchange is open for trading during the first week of that month. The Board approved a reduction in the annualized rate for distributions pursuant to the Policy from 8% to 7% effective beginning with the monthly distribution in August 2009. (The amount of the July distribution, previously announced in a press release issued on July 13, 2009, remains unchanged.) The Board believes that this revised rate is appropriate based upon the recommendation of UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the Fund’s investment adviser, in light of the Fund’s investment opportunities.

To the extent that the Fund’s taxable income in any fiscal year exceeds the aggregate amount distributed based on a fixed percentage of its net asset value, the Fund would make an additional distribution in the amount of that excess near the end of the fiscal year. To the extent that the aggregate amount distributed by the Fund (based on a percentage of its net assets) exceeds its current and accumulated earnings and profits, the amount of that excess would constitute a return of capital or net realized capital gains for tax purposes. A return of capital may occur, for example, when some or all of the money that shareholders invested in the Fund is deemed to be paid back to shareholders. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.”

The Fund estimates the source characteristics of its monthly distributions. The amounts and sources reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to retroactive changes based on tax regulations. The actual sources of the Fund’s regular monthly distributions may be net investment income, net realized capital gains, return of capital or a combination of the foregoing. The Fund sends shareholders a Form 1099-DIV (or a financial intermediary should provide an investor with similar information) for the calendar year that will tell shareholders how to report these distributions for federal income tax purposes.

Monthly distributions based on a fixed percentage of the Fund’s net asset value may require the Fund to make multiple distributions of long-term capital gains during a single fiscal year. The Fund has received exemptive relief from the Securities and Exchange Commission that enables it to do so. The Fund’s Board receives recommendations from UBS Global AM periodically and no less frequently than annually will reassess the annualized percentage of net assets at which the Fund’s monthly distributions will be made. The Fund’s Board may change or terminate the managed distribution policy at any time without prior notice to Fund shareholders; any such change or termination may have an adverse effect on the market price for the Fund’s shares.

Investors should not draw any conclusions about the Fund’s investment performance from the amount of the monthly distribution or from the terms of the Fund’s managed distribution policy.